Cadbury chocolate maker Mondelez International has announced plans to buy Clif Bar & Company for $2.9 billion. The acquisition will add Clif, Clif Kid, and Luna brand bars to the snacking giant’s existing portfolio and increase the value of its snack bar business to north of $1 billion.
Mondelez will also pay additional amounts to Clif, depending upon its earnings from its products, according to CNN. The deal is expected to close in the third quarter.
Mondelez is a Chicago-based food and beverage company that makes Toblerone, Oreo, BelVita, and Tang, among other products. The acquisition of Clif is its ninth deal since 2018, signifying a desire for higher long-term growth. The company, which operates in 160 countries, expects net revenue to increase more than 4% in 2022.
Mondelez says it will continue to make Clif's products at its current facilities in Idaho and Indiana, and it will also continue to operate Clif's business from Emeryville, California, where the firm is headquartered, once the transaction is completed later this year.
"We are thrilled to welcome Clif Bar & Company's iconic brands and passionate employees into the Mondelez International family," said Dirk Van de Put, Mondelez's Chairman and CEO. "This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits, and baked snacks, as we continue to scale our high-growth snack bar business.”
Clif Bar & Company was likewise excited about the deal:
"Mondelez International is the right partner at the right time to support Clif in our next chapter of growth," Sally Grimes, Chief Executive Officer of Clif Bar & Company, told CNN. “Our purposes and cultures are aligned, and being part of a global snacking company with broad product offerings can help us accelerate our growth."